Abu Dhabi property rents: where they are rising and falling in Q2 2022


Ian Oxborrow
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What was the general market movement in Abu Dhabi in the second quarter?

The Abu Dhabi rental market remained stable in the second quarter, with very little change in the rates being paid from the previous three months, brokers have said.

Property consultancy Asteco said new leases in good quality developments were being offered above market rates while some owners were still offering reduced rents and incentives to ensure a swift take-up of units.

It said demand for villas in popular areas such as Saadiyat Island and Yas Island remained strong, although rental rates overall were stagnant over the quarter and rose by an annual 5 per cent. The biggest rise over the past 12 months was at West Yas, where rents were up 9 per cent during the period.

JLL, meanwhile, recorded a 3 per cent annual increase in average rental rates across the capital during the period and described demand for new villa and townhouse developments as “robust”.

The most sought-after areas, according to trends observed by property portals Bayut and dubizzle, include Mohamed bin Zayed City, Khalifa City A, Al Reef, Shakhbout City (Khalifa City B) and Al Shamkha South.

The portals said these areas had recorded increases of up to 7 per cent in average annual rents during the first six months of this year.

Al Mushrif was the most sought-after luxury area while Khalifa City A had the highest number of searches for cheaper flats in the city.

The UAE's property market has grown sharply during the past year amid the broader economic recovery from the coronavirus-induced slowdown.

The country’s economy remains on a strong growth trajectory. It grew by 8.2 per cent in the first three months of this year on higher oil prices and measures to mitigate the impact of the Covid-19 pandemic, according to the UAE Central Bank.

What about supply of new units?

About 1,300 apartments were delivered from April to June, according to Asteco.

These were spread across different areas of Abu Dhabi, with the focus on Al Raha Beach and Reem Island.

“While there has been a marked rise in new project launches in the first half of 2022, several others have already progressed to the planning stage and are expected to start construction within the next six to 12 months,” the property consultancy wrote in its second-quarter report.

“The majority of these developments are located in Al Raha Beach, Yas Island and Reem Island.”

Asteco expects a total of 3,400 units to be completed this year, while JLL said it expects 5,000.

New projects announced this year include Louvre Abu Dhabi Residences and Grove District on Saadiyat Island, Reem Hills on Reem Island and Bloom Living, close to the Abu Dhabi International Airport.

How did Abu Dhabi's sales prices perform in the second quarter?

Villa sales prices were largely the same as in the first quarter, but up 10 per cent year on year, Asteco said.

Apartment prices were also flat during the three-month period, but up 4 per cent year on year.

“Completed villas continued to be well received, with emphasis on popular high-quality villa developments,” it said.

“As such, some of these communities recorded double-digit growth, compared with the same period last year. Still, the lack of units available for sale in the secondary market has resulted in particularly high asking prices in several prime [communities].”

JLL reported a year-on-year sales price rise for apartments and villas of 5 per cent on average.

What are the main cyber security threats?

Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Healthy tips to remember

Here, Dr Mohamed El Abiary, paediatric consultant at Al Zahra Hospital Dubai, shares some advice for parents whose children are fasting during the holy month of Ramadan:

Gradual fasting and golden points - For children under the age of 10, follow a step-by-step approach to fasting and don't push them beyond their limits. Start with a few hours fasting a day and increase it to a half fast and full fast when the child is ready. Every individual's ability varies as per the age and personal readiness. You could introduce a points system that awards the child and offers them encouragement when they make progress with the amount of hours they fast

Why fast? - Explain to your child why they are fasting. By shedding light on the importance of abstaining from food and drink, children may feel more encouraged to give it there all during the observance period. It is also a good opportunity to teach children about controlling urges, doing good for others and instilling healthy food habits

Sleep and suhoor - A child needs adequate sleep every night - at least eight hours. Make sure to set a routine early bedtime so he/she has sufficient time to wake up for suhoor, which is an essential meal at the beginning of the day

Good diet - Nutritious food is crucial to ensuring a healthy Ramadan for children. They must refrain from eating too much junk food as well as canned goods and snacks and drinks high in sugar. Foods that are rich in nutrients, vitamins and proteins, like fruits, fresh meats and vegetables, make for a good balanced diet

TERMINAL HIGH ALTITUDE AREA DEFENCE (THAAD)

What is THAAD?

It is considered to be the US's most superior missile defence system.

Production:

It was created in 2008.

Speed:

THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.

Abilities:

THAAD is designed to take out  ballistic missiles as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".

Purpose:

To protect high-value strategic sites, such as airfields or population centres.

Range:

THAAD can target projectiles inside and outside the Earth's atmosphere, at an altitude of 150 kilometres above the Earth's surface.

Creators:

Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.

UAE and THAAD:

In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then stationed them in 2016, becoming the first Gulf country to do so.

How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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The Africa Institute 101

Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction. 

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DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
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Director: Jon M Chu

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Rating: 4/5

Updated: July 29, 2022, 9:52 AM